ABOUT THE COMPANY
KSOLVES INDIA LTD is a software development and IT services country with presence in San Jose (USA), and Mozambique. Established as a cutting-edge technology, the company specializes in Big Data, Machine Learning, Salesforce, Odoo ERP solutions, and enterprise consulting. The company has recently collaborated with tech giants like Salesforce, Red Hat, Adobe, AWS, and Odoo (where it holds Gold Partnership status). With a market cap of ₹ 745 Crores, company falls under small cap category. Its revenue is generated by the clients outside the country, which comprise of 77% of the total revenue of the company. Return on Equity of the company is outstanding with 3 years return on equity being 143%. With a solid growth in the share price company has a high dividend paying ratio of 4.92%.
Analysis of the Financial Statements
Revenue Growth Trend
Revenue moved from 10 crores in 2020 to 137 crores in 2025 with a CAGR for revenues stands at 68.79%, while its competing company Havells India has a 5-year CAGR of 10-12%. CAGR rate can be a good sign for the retail investors, indicating that the company is ahead of its competitors and high dividend yields being cherry on the top. Revenue of the company is expected to rise in the future as the client turnover rate is very low and the current clients include Fortune 500- and billion-dollars companies.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 10 CRORES | 28 CRORES | 47 CRORES | 78 CRORES | 109 CRORES | 137 CRORES |
Profitability & Margin Analysis
Operating profits of the company have gone up over the years, being 35% in the past March 2025 while the industry average being 22%. This is a sign that the management is focused on cost efficiency and increasing the profit, which would help company to scale profit faster when the sales increase as the fixed cost burden is already minimized. Supported by its lean, assets light model, the company could generate a good number of profits in the future.
| March 2020 | March 2021 | March 2022 | March 2023 | March 2024 | March 2025 |
| 12% | 43% | 43% | 42% | 43% | 35% |
Balance Sheet Strength
The total assets of the company have grown from 2 crores in March 2020 to 56 crores in March 2025 showing subsequent capital investment. This subsequent growth shows company ability to support expanded operations. This asset appreciation plus cutting operational costs can build a solid foundation for future earnings growth, provided execution stays on track. The question for the investors would be whether the expanded assets base delivers higher return on capital employed (ROCE) and margin improvement in coming years.
Debt Profile
Borrowings of the company have been nil over the years, but the company has taken a loan of 9 Crores in FY2025 which is not alarming. Reserves showed a sharp increase from 1 crore to 12 crores, indicating a large portion of the assets are financed through retained earnings and not through debt. This makes the balance sheet healthier than if it was purely debt-driven. This conservative approach of the company may cap the aggressive growth opportunity compared to the leveraged peers.
Cash Flow Health
Operating cash flow of the company has been increasing sharply, i.e. 1 crore in March 2020 to 34 crores in March 2025, which shows that the company is easily able to convert its profit into cash. Cash Conversion Cycle of the company has been good in the past years when compared to its peer’s, indicating company is able to collect cash from its customers and settle the dues of its supplier, strengthening liquidity and reducing reliance on debt. The ultimate test of the company will be to maintain its current Return on Capital Employed which is 172% for the financial year 24-25.
Analysis of the Company Management (Investors presentation/Disclosures-based view)
Recent conference calls highlighted:
- Management is focused on improving its delivery quality and relationship depth with its existing clients.
- Management is constantly upgrading its technology and moving up the value chain and win larger, more complex projects.
- Management credibility screens strong given multi-year delivery on growth and profitability without leverage.
- Promoters holding in the company remained constant across the year at 58.94% showing their confidence in the company.
Disclaimer: The article is for informational purposes only and not investment advice.